THE J.G. WARD FARMERS' ASSOCIATION.

Press, Volume LIV, Issue 9789, 27 July 1897, Page 5

THE J. G. WARD FARMERS' ASSOCIATION.

(PRESS ASSOCIATION TEUEGKAJM.) DUNEDIN, July 26. Mr Fisher's examination was resumed this morning. Mr Solomon said, with a view to shorten the enquiry, be thought the Liquidator's remarks on the drafts were clearly proved, and it was. not necessary to examine further on that point. The question was whether it was a proper thing to do. Mr Chapman would not admit that the instances already given were typical of the lot, and took exception to the liquidator's statement that there was no business to represent any of the drafts, that they were practically " bogus." Mr Solomon must then continue a further investigation into the drafts. Mr Fisher said he did not think he advised Nelsons when drawing £6150, or that the draft was intended to be presented. Certainly be would not Bay it was put in for the purpose of a reduction of the overdraft. It was not fair to put it that way as it was done every day in business. Harrison Jones Devlin's draft for £900 was drawn on demand for consignments. He could find no trace of business in the ledger to support the draft. The draft was withdrawn as the goods were not sent. Sawtell and Wachsmaun'B draft for £1000 represented 14,008 sacks of barley. £ISO worth of business was done, and the balance of the barley was declined. He drew on Cave and Co., Adelaide, for £1000 but only sent 1000 socks of-oats instead of 3000. He then drew for £350 and withdrew the .balance of the goods. He had a right to draw on several firms (including Cave) on demand. He . considered himself entitled to anticipate shipments. He could not see any deception practised on the Bank. The banker and he agreed in his right to draw in anticipation of shipments. The erleot was to keep the overdraft down as against goods to be shipped. He drew, on the 15th of July, 1894, for £900 on Harrison Jones Devlin and shipped 2999 sacks of oats, representing the value of the draft, two days after. Mr Solomon said that was a proper transaction. Further examined, witness said he could not remember whether he ever told Mr JPard of this thing being done. He did not ffell the Directors. He could not say, the amount of goods consigned to Australia or of drafts against agents there during the Association's existence. He would not deny that the goods consigned amounted to £50,000 and the drawings to £86,000. The drawings on the New Zealand agents might be £45,000, and ha should say they sold goods exceeding that amount. Mr Ward handed in particulars of the £20,600 he paid into the Colonial Bank. j Mr Solomon said it was not satisfactory. What had Mr Ward done with the money t Mr Cooper said the amount went in rei duction of debts to th*> Bank. i His Honour thought this was the answer counsel wanted. I Mr Solomon said Mr Ward owed £30,000 to the Association, and he wanted to search for further assets for the purpose of the i liquidation. * l Mr Cooper said Mr Ward's estate was in I bankruptcy and that Court was the proper i one to investigate the assets, this enquiry simply being for the purpose of investigating the Association's affairs. Mr Ward was willing to give further particulars required on oath. -. , His Honour said counsel had better thinK the matter over and adjourned Mb decision. On the Court resuming, Mr Solomon said what he wanted was Mr Ward's losses on every account; he would be satisfied with that. .. Mr Cooper said they could give that if allowed a little time. Further questioned, Mr Fisher ea»d he knew the amount paid by the Association on Mr Ward's account went to hia' credit for debts owing to the Bank. He repeated that the Directors did not know anything about Mr Ward's account, as far as he was aware. He knew he owed debts to the extent of £20,000 to the Bank, which the Association paid within the first six months of its existence. The security the Association held for the balance was Mr Ward's shares, valued at £23,000. In addition they had all the money he owed for shares and the trade upon'which they held no security. He expected he decided himself it was a proper thing to pay Mr Ward's debts, and had no recollection of receiving any instructions from anybody. He could not recollect whether he told Mr Ward, but expected he did. He was not prepared to say whether Mr Ward asked him to pay them, bo* at anyrate the Association got them att paid Mr Solomon—Oh, ye« ; the £55,000 again. Witness, in reply to a further question hs to the Twine Company transaction, said he was appointed.liquidator of that Company, and believed there had been a payment ol £100 by that Company to the Association, but it did not amount to " hundreds of pounds "as counsel said. £5000 was • not the price of the whole .business, etocks, 4c. It was the price of the property so far as Ross's interest Mas concerned, but did .not include the raw'products and oil machinery. Probably £500 or £600 was all the stock Ross had, .so that the whole business amounted to £5500 or £5600 for everything Ross had. It was a moral certainty the Directors knew of this matter, as they knew of the agreement wHich contained fall particulars. He could not say if the purchase of Ward's stock of twine by the Twine Company was brought before the Directors, as there was nothing in the minute book about it. Counsel handed witness the cheque for £6465, representing the twine purchased from Mr Ward, and asked. if he could explain why the ink in the body of the cheque was a different colour to the figures. Witness said if Mr Ross said he signed the cheque in blank it was untrue. He (Mr Fißber) had drawn out the cheque saad the entry of the amount was his, aud the words in the body and the figures were made at the same time. He resented with somis warmth any insinuations made concerning the matter. Asked whether the balance sheet of 1895 truly set out the assets, he said that, with deductions made (which he considered justifiable at the time), it did do so. He believed the deduction of £10,000, the Carswell purchase, and £9975 on the grain railage account, secured to the Colonial Bank, to be correct, and be- : Iwfcfed bo now. He referred counsel to the

Aquidator's statement, in his sworn affidavit, 'to the Court, for a similar instance. Tha liquidator had not shown amongst the assets an item of £2500, standing to the credit of the Company with the Bank of New Zealand, or 9000 sacka of oats which were in store at the date of the statement {26*b March, 1896. Mr Cook said Mr Fisher's statement was absolutely incorrect. Further examined, Mr Fisher said he had not heard Mr Anderson or the Auditor admit the deductions were As to these items appearing in the balance-sheet submitted at the request of the Colonial Bank on the 30th of November, 1895, showing a deficit of £2026 6s, that statement was a complete txpoti of the affairs of the Association at. the Bank's request, and $he Bank knew, all the particulars as to the items, and'also as to the past due bills, eiso admitted. Mr McLean sent a verbal message to him by Mr Birch that, if the Bank could detect him as in any way misleading them, he would have him arrested. The Bank got their own officers to dissect the information, and they also had the Association balancesheet up to June, 1895, before them,. when the November statement was sent in. He told Mr McLean then that if he could detect him in misleading the Bank he could carry out his threat. He was not prepared to say that, in doing what he did. he concealed from the public and the shareholders an immense amount of the liability the Association was carrying on its shoulders. The Court then adjourned. The witness will be ro-examinsd by his own counsel on a few points. Mr Birch, the Colonial Bank manager, will he the last witness, and the enquiry will finish tomorrow.

The following are the letter and balancesheet produced in Court to-day, which had been prepared at the request of the Colonial Bank, and on which Mr Fisher was questioned today: — "Invercargiit, 18th December, 1895. " Hon. George McLean, Dunedin. " Dear Sir,—Mr Birch has delivered mc your message,- and the balance-sheet sard details of toe Bame asked for by Mr Vigers are being prepared, and will be seat ajaog

prepared to stand or fall upon the figures given in the same, and, if you can detect mc o» in any way misleading you, you are at perfect liberty to put your threat into operation. I have been absolutely candid and truthful in the information given to Messrs Vigers and Davidson, and the balance-sheet being sent you is an exact exposure of the position of the Association as on the 30th of Jfovembcr, the date of tho Lalance.—Yours, &c, (Signed), "J. Fismm." Tax J. a. War* Faxmcm' Awocutio* or N«w ZBAiiUfD, Limitid, 30th November, 1895. Lusnrnm. £ s. d. B a. d. Capital .. .. 27,175 0 0 Less goodwill •. 15,000 0 0 12,475 0 0 Bank of New Zealand— Grain, rail .. .. 10,215 2 2 Current account—lnvercargill.. «. 245 0 8 Ourreot account — Gore .. 218 5 0 Put due bills .. 13468 16 10 BUls under discount 31,153 9 1 Debentures.. _ 40,000 0 0 -J 94,994 13 9 Sundry Creditors— Local creditors .. 6.925 16 S John Connell and do. 15,784 17 4 Robert Urooksaad Co. 9,754 9 1 31,465 2 10 Total ... „ - £138,934 16 7 teem. £ 8 d Stocks ot goodsonhand .. 20,509 19 2 Current account (fcrtladra? past due bills) 62,535 12 6 Corarteiunsnt* oatstandinir .. .. 553 16 6 Working plant and office furniture — 2,420 8 3 BUli receivable .. „ - 34,636 17 5 Cute In stock (our own) „ - 13,488 0 0 Shares in saleyarda .. - 50 7 6 Waddel's property, Bind .. 2,500 0 0 Debentures in New Zealand Loan and Mercantile (cost) .. .. 233 9 3 Total « £136,909 10 7 Defldt « 2,026 6 0 £138,934 16 7 This l»a true and comet statement of the assets and liabilities ot this Association as atabove date. (Signed) J. Funs*.